Best July on Record for Canadian MLS® Home Sales

The Canadian Real Estate Association has just released a report indicating that MLS® home sales were up nationally in July 18.2% from July of 2008 and further, were 3.9% above the previous record for July set in 2007. Home sales across Canada in general have now posted month-over-month increases for six consecutive months. The increased sales activity appears to be relatively widespread with over 60% of markets reporting increased activity in July.
The big questions that remains is will this somewhat robust and unexpected turnaround in the overall real estate market last?
Politicians on many fronts appear to be claiming victory over this latest recession however one sobering fact remains. Unemployment still stands a relatively high levels in many provinces across the country and until there is some stability and optimism in the job market, conditions may very well remain somewhat unsettled. Certainly the slump in sales that was experienced from September of 2008 until April or May of this year created some pent-up demand for housing. The fact remains however that consumers will not make major commitments such as buying a home until such time as they are confident in their ongoing employment status.
The rebounding housing market combined with a slowdown in new listing activity has significantly reduced the unsold housing inventory that has lingered in many markets for a number of months. In July there were a total of 219,982 homes listed for sale on the MLS® systems of real estate boards nationwide. This represents a 12.4% reduction in inventory compared to July 2008 and is the largest decline in active listings in more than six years.
Locally, new listing activity in the MLS® system of the Georgian Triangle Real Estate Board is down by 4% which represents a total of 163 properties. Meanwhile, expired listings have increased by 29% with 1,765 property listings have expired to the end of July as many sellers, frustrated with no buyers have removed their homes from the market pending an improvement to the economy.

Year-to-Date Real Estate Sales - Synopsis

Following the exceptionally strong sales in July as reported in my prior post, year-to-date real estate sales activity for Collingwood and the surrounding area has regained some of the ground that was lost after the recession set in. Year-to-date MLS® sales reported through the Georgian Triangle Real Estate Board totals $252.8 million compared to $290.0 million in sales done during the first 7 months of 2008. The year-to-date shortfall of just over $37 million typically represents less than one month's sales so as you can see, area real estate sales have performed very well given the economic conditions overall.
As indicated on the attached graph, despite a slight dip in May, monthly sales have been trending upwards since January. Year-to-date 988 MLS® sales have been reported through the end of July as compared to 1,120 for the first 7 months of 2007, a decrease of 13%. Listing activity has moderated significantly since last year resulted in more balanced market conditions and stable pricing. Year-to-date the number of new listings to hit the market totals 3,583 properties a decrease of 4% from the same time last year. This represents 3.6 months of inventory, slightly above the 3.3 months of inventory on hand last July just before the market went into a major slump.
If MLS® sales during the remainder of the year show the same degree of strength as shown in June and July, it is quite possible that year-to-date results for 2009 will meet and or perhaps exceed the full years sales of 2008.
For information specific to your area and or price range, please do not hesitate to contact me.

Area Real Estate Sales in July Explode

Sales of Collingwood and area real estate during July exploded, exceeding July sales during the same month in each of the previous two years. Revenue for the month totaled $62.2 million up 45% from the $42.8 million sold in 2008 and 4.6% from the $59.4 million sold in 2007. The fact is, prior to this year, July sales have never reached that magnitude in terms of dollars. These are based on sales reported through the MLS® system of the Georgian Triangle Real Estate Board.
MLS® unit sales for the month totaled 218 properties an increase of 47 sales or 27% compared to July of 2008. Most notable was the sharp increase in single family residential sales in Wasaga Beach with 44 sales reported this July as compared to 25 last year, an increase of 76%.
The year-to-date 12 month average price in our area remains unchanged from this time last year at just over $280,000. The average residential price in Collingwood dipped slightly for the month of July the first time Collingwood prices have decreased in quite some time.
New listing activity thus far this year has slowed significantly over the past couple of years resulting in more balanced market conditions. Year-to-date, the number of new listings that have come onto the market is down 4% whereas expired listings continue to run at an extremely high level up 21% over last year. Many sellers still persist in attempting to attain above market value prices for their properties and it's just not going to happen.
In my next posting I will review the local condo market. In the meantime my 2nd Quarter Georgian Triangle Real Estate Newsletter is available online summarizing the overall market for the first six months of 2009.